3.7 Supply-Side Policies (DP IB Economics: HL)

Exam Questions

16 mins7 questions
12 marks

Case Study

Text A, Paragraph 1
In response to stagnating growth, Germany is considering various supply-side policies to address its long-term economic challenges. These policies are expected to improve the country’s competitiveness on the global stage.

Define the term supply-side policies as indicated in bold (Text A, Paragraph 1).

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22 marks

Case Study

Text C, Paragraph 1
Several European countries, including France, have introduced interventionist policies to address market failures and enhance public infrastructure. These initiatives are part of broader efforts to stimulate long-term economic growth.

Define the term interventionist policies as indicated in bold (Text C, Paragraph 1).

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32 marks

Case Study

Text E, Paragraph 1
India is in the process of implementing deregulation across various sectors in hopes of boosting entrepreneurship and foreign investment. Critics, however, are concerned about the potential social impacts of these changes.

Define the term deregulation as indicated in bold (Text E, Paragraph 1).

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42 marks

Case Study

Text D, Paragraph 2
China has announced a significant investment in human capital as part of its long-term economic strategy. This initiative aims to improve the skill set of its workforce in response to global economic shifts.

Define the term human capital as indicated in bold (Text D, Paragraph 2).

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53 marks

Case Study

Text E, Paragraph 2

Poland is currently considering policies to reduce trade union power as part of its efforts to create a more flexible labour market. This move has been met with opposition from workers' groups.


Describe the impact of reducing trade union power on the labour market as found in (Text E, Paragraph 2).

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63 marks

Case Study

Text D, Paragraph 3
The UK government is reviewing proposals to reduce minimum wages to increase employment opportunities for low-skilled workers. However, the potential social implications have sparked intense public debate.

Describe the impact of reducing minimum wages as indicated in bold (Text D, Paragraph 3).

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72 marks

Case Study

Text E, Paragraph 3
Mexico’s government has highlighted the main objectives of its new supply-side policies, aimed at addressing long-term economic challenges and promoting sustainable growth.

State two objectives of supply-side policies as found in (Text E, Paragraph 3).

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